{"id":989287,"date":"2021-03-01T21:37:00","date_gmt":"2021-03-01T21:37:00","guid":{"rendered":"https:\/\/explorecem.com\/?p=989287"},"modified":"2026-04-17T21:46:52","modified_gmt":"2026-04-17T21:46:52","slug":"the-canadian-pension-fund-model-a-quantitative-portrait","status":"publish","type":"post","link":"https:\/\/explorecem.com\/the-canadian-pension-fund-model-a-quantitative-portrait\/","title":{"rendered":"The Canadian pension fund model: a quantitative portrait"},"content":{"rendered":"\t\t
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Chris Flynn, Head of Research,<\/strong>
Sebastien Betermier, Associate Professor of Finance McGill University,<\/strong>
Quentin Spehner, Senior Research Associate<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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This original CEM research was published in the March 2021 edition of the Journal of Portfolio Management (JPM). If you subscribe to the JPM you can access\u00a0the article here.<\/a>\u00a0If you don\u2019t, but want to get a copy of the reprint, there is a chance we can get a copy for you in the future. Please, express your interest by\u00a0filling out this form.<\/a><\/p>\n

ABSTRACT<\/b><\/p>\n

This article presents a quantitative portrait of the Canadian pension fund model. The authors show that, between 2004 and 2018, Canadian pension funds outperformed their international peers in terms of both asset performance and liability hedging. A central factor driving this success is the implementation of a three-pillar business model that consists of (1) managing assets in-house to reduce costs, (2) redeploying resources to internal investment teams for each asset class, and (3) channeling capital toward growth assets that increase portfolio efficiency and hedge liability risks. This model works best for funds whose pension liabilities are indexed to inflation.<\/p>\n

KEY FINDINGS<\/b><\/p>\n